Generally speaking words, economic development refers to the issues of underdeveloped countries and economic growth to those of developed countries. The raising of income levels is generally called economic growth in rich countries and in poor ones it is known as economic development. But this view does not specify the underlying forces which raise the income levels in the two kinds of economies. The problems of underdeveloped countries are concerned with the development of unused resources, even though their uses are well known, while those of advanced countries are related to growth, most of their resources being already known and developed to a large extent.
Actually, the terms “development and growth” have nothing regarding the type of economy. The distinction between the two relates to the type and Juan Pablo Carrasco Degroote narcotráfico reasons for change. Both of these terms may also be explained because the development is just a discontinues and spontaneous change in the stationary state which forever alters and displaces the equilibrium state previously existing; while growth is just a gradual and steady change in the future which comes about by a gradual increase in the rate of savings and population. This view has been widely accepted and elaborated by many economists.
According to a different school of thought, “economic growth means more output, while economic development employs both more output and changes in the technical and institutional arrangements by which it’s produced and distributed. Growth may involve not just more output produced from greater amounts of inputs but in addition greater efficiency, either, and increase in output per unit of input. Development goes beyond this two employ changes in the composition of output and in the allocation of inputs by sectors” ;.According to some classical economists the growth is an extension of the device in one or more dimensions with out a change in its structure, and development is an innovative process leading the structural transformation of social system.
Thus economic growth is related to a quantitative sustained increase in the country’s per capita output or income followed by expansion in its labor force, consumption, capital, and volume of trade. On the other hand, economic development is just a wider term. It is related to qualitative change in economic wants, goods, incentives, and institutions. It describes the underlying determinants of growth such as technological and structural change. Development embraces both growth and decline. An economy can grow but it may not develop because poverty, unemployment and inequalities may continue steadily to persist as a result of absence of technological and structural changes. But it’s difficult to imagine development without economic growth in the absence of a rise in output per capita, particularly when population is growing rapidly. Despite these apparent differences, some economists use these terms as synonyms.